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As we enter the new year, we\u2019re taking a moment to reflect on some of the critical themes that shaped the markets in 2024. These include geopolitics, evolving trade policies, and the shifting dynamics of the future of global energy. We anticipate that these factors will continue to play a significant role in influencing economic and market trends in 2025. Our focus remains on closely monitoring these developments to identify potential risks and opportunities as they emerge.<\/em><\/p>\n <\/p>\n 2025 Macroeconomic Overview<\/span><\/p>\n After another year of progressively moderating inflation across the globe, policymakers largely declared victory. However, certain developed markets, particularly the United States, continue to grapple with inflation that, while easing, remains stubbornly above the target 2% threshold.<\/p>\n Despite this persistent inflation, central banks in the US and other developed economies have begun to reduce interest rates. These institutions deserve recognition for navigating a challenging landscape; they have successfully maintained a relatively smooth economic trajectory, avoiding the much-anticipated recession. By effectively balancing their dual mandates of full employment and price stability, they have fostered resilience in many economies.<\/p>\n In contrast, Japan faced a different scenario as inflation emerged for the first time in many years, prompting the Bank of Japan to implement two rate hikes.<\/p>\n Globally, 2024 was also a year marked by elections, during which incumbents fared poorly. Some leaders returned with smaller majorities while others lost power entirely. Many populations appeared ready for a change from governments that managed the COVID-19 crisis and led through a period of high inflation.<\/p>\n Amidst these political and economic shifts, gold prices soared throughout 2024, driven by increased demand from developing nations. Rising deficits and escalating debt levels, alongside mounting interest payments, further intensified the appeal of gold as a safe haven in uncertain economic times.<\/p>\n Outlook The anticipated return of President Donald Trump to the White House on January 20th carries the potential for significant policy changes through a series of executive orders. This inauguration marks the beginning of what promises to be a tumultuous and eventful year. Several key topics are expected to dominate economic and geopolitical discussions:<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Tariffs and Trade<\/p>\n Global leaders should be expected to closely monitor how President Trump\u2019s campaign rhetoric translates into policy decisions. The president has already signalled his intention to impose tariffs on Canada and Mexico unless decisive action is taken to curb the flow of illegal immigrants and drugs\u2014including fentanyl\u2014into the United States.<\/p>\n It is critical to note that tariffs can serve as both a strategic tool and a blunt instrument. For instance, while some countries impose tariffs on American goods, the U.S. can use the threat of reciprocal tariffs as a powerful negotiating tactic. Observing how these strategies unfold will be essential to understanding their impact on international trade relations.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Geopolitical (In)Stability?<\/p>\n Ongoing conflicts in Eastern Europe and the Middle East continue As 2025 progresses, a crucial question remains: will these conflicts find resolution? President Trump appears optimistic about his ability to broker deals, an outcome that aligns with U.S. interests seeking to shift focus towards East Asia. The recent appointment of Representative Mike Waltz as National Security Advisor and Senator Marco Rubio as Secretary of State\u2014both known for their firm stance on China\u2014indicates that addressing the challenges posed by Beijing will be a top priority in a new Trump administration.<\/p>\n Nuclear energy resurgence<\/p>\n The appeal of nuclear power is multifaceted: it enhances energy security through reliance on domestic or Western-aligned supply chains, fosters economic growth, and contributes to achieving zero carbon emissions. These factors position nuclear power as a critical player in the energy landscape, making it a focal point for future investment and development.<\/p>\n \u00a0<\/p>\n![\"The](\"https:\/\/blog.empirelife.ca\/hs-fs\/hubfs\/GettyImages-171585034.jpg?width=300&height=200&name=GettyImages-171585034.jpg\")
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However, the scope of these tariffs may extend beyond North America. China is likely to be a primary target, with Europe potentially following.<\/p>\n![\"Flag](\"https:\/\/blog.empirelife.ca\/hs-fs\/hubfs\/GettyImages-1767770119.jpg?width=300&height=200&name=GettyImages-1767770119.jpg\")
to escalate, while the Red Sea and Suez Canal remain effectively closed to commercial shipping due to attacks on maritime vessels by Houthi forces in Yemen.<\/p>\n![\"Nuclear](\"https:\/\/blog.empirelife.ca\/hs-fs\/hubfs\/GettyImages-1699619381.jpg?width=300&height=225&name=GettyImages-1699619381.jpg\")
Enthusiasm for nuclear power continues to grow among policymakers, financial institutions, utilities, and the broader public. This interest stems from recognizing nuclear energy\u2019s potential to provide the clean baseload power necessary to meet the rising demands driven by AI data centers, electric vehicles and global GDP growth \u2014 all while adhering to net zero commitments.<\/p>\n
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